Selected stock price target news of the day - March 5th, 2024

By: Matthew Otto

GitLab’s Q4 FY’24 Financial Results: Revenue Growth and Operational Milestones

GitLab unveiled its financial outcomes for the fourth quarter of Fiscal Year 2024, showcasing a 33% uptick in revenue. This propelled the company to achieve a 37% growth for the entire fiscal year. Noteworthy milestones include a surge in customers with Annual Recurring Revenue surpassing $1 million, with the count soaring from 63 to 96 within the span of one year.

GitLab’s Dollar-Based Net Retention Rate stood at 130% for the quarter. Additionally, non-GAAP gross margins remained at 92%, while Software-as-a-Service revenue surged by 52% year-over-year, constituting over 25% of total revenue.

GitLab exhibited a non-GAAP operating margin expansion, recording over 1,900 basis points. This translated to an operating profit of $13.2 million for the quarter, representing 8% of revenue. The company also achieved a turnaround in cash flow metrics, with cash from operating activities totaling $24.9 million, compared to a prior-year cash outflow of $11.7 million. Moreover, GitLab’s Free Cash Flow surged to $24.5 million, an increase from the negative $12.8 million reported in the same quarter of the previous year.

Looking ahead, GitLab provided guidance for Fiscal Year 2025, projecting revenue of $725 million to $731 million.

Analysts’ Mixed Ratings Amidst Adjusted Price Targets

Canaccord Genuity analyst Kingsley Crane reiterated a Buy rating and a $74 price target.
BofA Securities analyst Koji Ikeda maintained a Buy rating and lowered the price target from $88 to $85.
Mizuho analyst Gregg Moskowitz maintained a Buy rating and decreased the price target from $87 to $75.
Cantor Fitzgerald analyst Jonathan Ruykhaver kept an Overweight rating and decreased the price target from $80 to $70.
Bernstein analyst Peter Weed reiterated an Outperform rating and raised the price target from $71 to $76.

Which Analyst has the best track record to show on GTLB?

Analyst Matthew Hedberg (RBC) currently has the highest performing score on GTLB with 13/16 (81.25%) price target fulfillment ratio. His price targets carry an average of $11.01 (18.66%) potential upside. GitLab stock price reaches these price targets on average within 142 days.

Stitch Fix Reports Q2 Fiscal 2024 Results: Revenue Declines Amidst Transformation Efforts

Stitch Fix disclosed its financial performance for the second quarter of fiscal 2024, revealing a net revenue decline from continuing operations by 18% year-over-year to $330.4 million. This reduction coincided with a 6% decrease in active clients from continuing operations, amounting to 2,805,000, and a significant year-over-year drop of 17%.

Despite these challenges, the company reported a gross margin increase to 43.4%, marking a 250 basis points improvement over the previous year. Moreover, adjusted EBITDA from continuing operations stood at $4.4 million.

Looking ahead to the third quarter of fiscal 2024, Stitch Fix anticipates a net revenue range of $300 million to $310 million, representing a year-over-year decrease of 19% to 22%. Adjusted EBITDA from continuing operations for this period is forecasted to range from negative $5 million to $0 million, translating to a margin between -2% and 0%.

For the full fiscal year 2024, the company expects net revenue from continuing operations to fall within the range of $1.29 billion to $1.32 billion, adjusted for a 52-week period, reflecting a year-over-year decrease of 17% to 19%. Adjusted EBITDA from continuing operations for the fiscal year is projected to be between $10 million and $20 million, representing a margin of 1% to 2%.

Analysts Adjust Ratings and Price Targets Amidst Market Challenges

Piper Sandler analyst Erinn Murphy maintained an Underweight rating and lowered the price target from $3 to $2.25.
Wedbush analyst Tom Nikic kept a Neutral rating and downgraded the price target from $4 to $3.
Canaccord Genuity analyst Maria Ripps kept a Hold rating and downgraded the price target from $4 to $3.5.
Wells Fargo analyst Ike Boruchow reiterated an Equal-Weight rating and decreased the price target from $3.5 to $3.
Bernstein analyst Aneesha Sherman maintained a Market Perform rating and lowered the price target from $4 to $3.4.
Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating and the $4 price target.

Which Analyst has the best track record to show on SFIX?

Analyst Mark Altschwager (BAIRD) currently has the highest performing score on SFIX with 10/13 (76.92%) price target fulfillment ratio. His price targets carry an average of $0.08 (2.34%) potential upside. Stitch Fix stock price reaches these price targets on average within 91 days.

Avadel Reports Financials and Market Uptake for LUMRYZ in Q4 2023 Earnings Call

Avadel Pharmaceuticals reported $19.5 million in net revenue for the fourth quarter of 2023, contributing to a total revenue of $28 million for the seven months ended December 31, 2023. Despite an increase in operating expenses to $43.7 million for Q4 2023, inclusive of $4.6 million in non-cash charges, Avadel maintained its cash position, with $105 million in cash, cash equivalents, and marketable securities as of December 31, 2023.

The company revealed that LUMRYZ, its flagship narcolepsy treatment, demonstrated market uptake, with over 2,200 patients enrolled in the RYZUP program as of January 31, 2024. Notably, 1,200 patients had initiated LUMRYZ treatment by the end of January, showcasing continued demand and an encouraging trajectory. Avadel’s strategic focus on operating breakeven aligns with their anticipation of achieving it in 2024 when the number of commercially reimbursed patients on therapy reaches approximately 1,300 to 1,500. This financial outlook aligns with sell-side estimates, indicating a consensus revenue expectation of approximately $155 million for the full year 2024.

Analysts Bullish, Raise Price Targets Across the Board

Craig-Hallum analyst Chase Knickerbocker maintained a Buy rating and raised the price target from $20 to $22.
Oppenheimer analyst Francois Brisebois maintained an Outperform rating and raised the price target from $27 to $29.
HC Wainwright & Co. analyst Oren Livnat reiterated a Buy rating and increased the price target from $21 to $25.
Piper Sandler analyst David Amsellem reiterated an Overweight rating and increased the price target from $18 to $23.
Needham analyst Ami Fadia kept a Buy rating and upgraded the price target from $20 to $22.

Which Analyst has the best track record to show on AVDL?

Analyst Ami Fadia (NEEDHAM) currently has the highest performing score on AVDL with 13/22 (59.09%) price target fulfillment ratio. His price targets carry an average of $6.44 (47.49%) potential upside. Avadel Pharmaceuticals stock price reaches these price targets on average within 220 days.